ZKSwap, a token swap protocol being built on ethereum's layer-2 scaling technology ZK-rollups, has raised $1.7 million in an angel round.
L2 Lab, the firm behind the project, said in a press release on Monday that the round – closed last week – was led by Bixin Capital, the investment arm of Bixin, a long-time bitcoin miner and wallet operator in China.
Other investors include Chinese crypto and equity funds such as SNZ Capital, FBG Capital, and Longling Capital.
The decentralized exchange protocol is based on ZK-rollups, a solution to scale the transaction capacity on ethereum by adopting the so-called zero-proof technology. The goal is to solve issues like high transaction fees and low throughput to improve the user experience at decentralized exchanges.
"As Vitalik mentions, rollups will be the dominant scaling solution for Ethereum in the next few years. Among all the rollup solutions, we believe ZK-Rollup is the best implementation,” Alex Lee, the project lead behind the protocol, said in the release.
The firm said ZKSwap launched a test version on ethereum's testnet Ropsten on November 16 before it can stabilize and roll out officially on the ethereum mainnet.